Ukraine switches power plants to fuel oil, closes
schools to save gas
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 [March 02, 2018]
KIEV (Reuters) - Ukraine has
switched power plants to fuel oil from gas in an effort to make up for
an emergency shortage after Russian company Gazprom <GAZP.MM> declined
to resume gas supplies to the country, Energy Minister Ihor Nasalyk said
on Friday.
The shortfall comes at a time of peak demand after a Europe-wide cold
snap blanketed most of Ukraine with heavy snow and pushed temperatures
well below freezing.
Nasalyk told parliament the lack of Russian supplies had created a
deficit of up to 20 million cubic meters (mcm) of gas per day. Thermal
power plants switching to fuel oil could save around 15 million mcm a
day, he said.
The Energy Ministry also asked local authorities to suspend lessons at
schools, universities and kindergartens until March 6.
The gas shortage equates to one tenth of Ukraine's daily consumption of
around 200 mcm.
On Thursday, Gazprom said it had returned a prepayment to Ukraine and
would not restart gas supplies as an additional agreement to the
existing arrangements had not yet been reached. Ukraine said it would
seek compensation.
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Ukrainian Energy Minister Ihor Nasalyk attends a parliament session
in Kiev, Ukraine, April 14, 2016. REUTERS/Valentyn Ogirenko
The row represents a new front in a long-running legal battle, a by-product of
broader political tension following Russia's annexation of Crimea in 2014 and
support for separatists in eastern Ukraine.
It follows Wednesday's international arbitration court order for Gazprom to pay
$2.56 billion to Ukraine's Naftogaz after weighing mutual claims and
counter-claims related to gas supplies and transit.
The decision was welcomed in Ukraine as a major win for Naftogaz. Gazprom has
said it will contest the ruling.
(Reporting by Pavel Polityuk; Editing by Dale Hudson)
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